Image: Falcon Northwest
It's drizzling cash, a minimum of if you're offering graphics cards. According to current market research study, the marketplace for graphics processing systems is set to strike about $100 billion in 2024. It's a huge shift in a market sector that was currently growing rather rapidly.
Do not get too fired up, players. We aren't the ones purchasing. Practically all of that development is driven by a surge in AI facilities, according to Jon Peddie Research in a brand-new market report, which validates that Nvidia is enjoying the majority of the advantage in this modification.
That's barely unexpected if you've even been glancing at the news recently. Offering AI hardware for information centers, simply a number of years after offering a few of the very same hardware for cryptocurrency generation, has actually driven Nvidia to end up being the most important business on earth. (By market cap, anyhow. There are other methods to determine business worth, however that's an argument for larger brains than mine.)
For a bit of broad context on this $100 billion number, the approximated around the world earnings for mobile phones in 2023 had to do with $500 billion according to Statista, and automobile sales amounted to about $2.1 trillion for the leading 20 makers.
Nvidia is absolutely the go-to supplier for any business that wishes to quickly scale up versatile, AI-focused information centers, if you have the scratch. Nvidia's next-generation AI hardware is forecasted to cost in between $30,000 and $40,000 per system on top tier. That's the sort of “huge iron” that makes an RTX 4090 appearance inexpensive, and it's partially why the heading of this post remains in dollars instead of concrete chips or cards.
Of course, Nvidia isn't the only gamer in the market right now, even if it's definitely controling at the minute. Intel, AMD, Qualcomm, and Broadcom are all nipping at Nvidia's heels, and even some surprise gamers like Apple and Meta (Facebook) get a reference in the brief type of Jon Peddie's report.
It's worth mentioning that offering chips for AI information centers isn't the only method to make some scratch in GPUs. Naturally, you've got both discrete and integrated graphics for PCs, smart devices, and tablets, video game consoles, and a lot more customized hardware entering into vehicles, VR headsets, and wearables like smartwatches. As the report states, “GPUs have actually ended up being common and can be discovered in nearly every commercial, clinical, industrial, and customer item made today.” Overall volume for the AI part of the marketplace is really relatively low, even if it's driving the lion's share of the revenues.
Long story brief: People are still going to play video games and stream video, even if they're talking with ChatGPT to assist stem the squashing tide of digital seclusion while they do it. Somebody needs to make and offer that hardware.
It'll be fascinating to see how the concentrate on high-margin business-to-business sales impacts Nvidia's output in 2025,
